Chapter 4 Flashcards
1
Q
Law of demand
A
Consumers buy more of a good when it’s price decreases and less of it when it increases in price
2
Q
Income effect
A
The change in consumption resulting from a change in real income
3
Q
Market demand
A
Quantity of a good all consumers in a market will buy at every different price
4
Q
Inferior goods
A
A good that a consumer demands less of when their income increases
5
Q
Demand shift
A
More or less entrants into the market and the changing of consumer preferences
6
Q
Elasticity
A
Ability to change and adapt
